Shiba Inu and Dogecoin continue to remain top choices for investors leading into the bull market. But the crashes from recent weeks have rocked not just their prices, but the market sentiment among them. As the sentiment for both of these meme coins fall, it could mean that it is time to get back into them.
Dogecoin And Shiba Inu Drop To Neutral
The Fear & Greed Index is a scale that helps to tell how crypto investors are looking at a particular asset at a given time. The higher the scale is, the more investors are willing to invest in the assets. While the reverse is the case when the scale falls.
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This scale measures sentiment across five categories, including Extreme Fear, Fear, Neutral, Greed, and Extreme Greed, and these are represented by numbers. 1-25 is Extreme Fear, 26 to 46 is Fear, 47 to 53 is Neutral, 54 to 75 is Greed, and 76-100 is Extreme Greed.
Now, since the crypto market saw a recovery since the start of 2024, coins like Shiba Inu and Dogecoin saw their market sentiment rise into the greed territory, even as high as Extreme Greed. However, now, as prices begin to correct back downward, sentiment has fallen as well, sending them toward the fear territory. Currently, both indexes for Dogecoin and Shiba Inu are sitting in neutral.
Data from the CFGI website puts the Shiba Inu sentiment at a value of 51, which is neutral. At the same time, Dogecoin sits at a score of 52, which is neutral as well. At this time, this means that investors are not making any moves and are instead waiting to see where the prices go before throwing their hats in the ring.
Is It Time To Buy?
Historically, the best time to buy is when investors are wary of the market. This often means that prices are hitting their bottom, making them the ideal entry point. However, this has usually been in times of extreme fear and not neutral sentiment.
For example, both Dogecoin and Shiba Inu are still seeing some bullish metrics. One of these is the daily trading volume of these assets. Dogecoin’s trading volume is up 15.51% in the last day to $845.7 million. While the Shiba Inu trading volume is up 22.86% in the same time period to reach $389 million.
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This suggests that despite sentiment rolling toward neutral, there is still a lot of interest in both of these meme coins. Therefore, it is not the ideal time to go all in. But rather, smaller positions and dollar cost averaging (DCA) are a better route.
However, with the bull market expected to continue and outpace the previous bull markets, it is expected that current prices will seem like a bargain once the cryptocurrency market does begin to move.
DOGE price holding above $0.5 | Source: DOGEUSDT on Tradingview.com
Featured image created using Dall.E, chart from Tradingview.com
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